Barna Consulting Group. PromenAid Handrail: Managing Growth

Transcription

1 PromenAid Handrail: Managing Growth

2 Mandate HOW TO MANAGE GROWTH AND NOT DIE FROM YOUR OWN SUCCESS?

3 Overview Growth burns out CASH

4 Key Challenges Cash Flow How to manage cash flow? Distribution Channels Which distribution channels are the best for merchandising this innovative product? Business Model What is PromenAids business model? Product Differentiation How to effectively differentiate the product from the competition? Corporate Governance How should the corporation by administrated?

5 Alternatives Invest in Manufacturing Invest in Retail/E- Commerce Design, Produce and Distribute the Handrails. Design, Retail and Marketing of the product: keep outsourcing production. Status Quo

6 Criteria Competitive Advantage Return on investment Economic Feasibility

7 Alternative Analysis Invest in Manufacturing Competitive Advantage Economic Feasibility Return on Investment Invest Retail/E- Commerce Status Quo Recommendation: Invest in RETAIL/ ECOMMERCE

8 Product FUNCTIONAL HANDRAIL Competitive Advantage Safety and Accessibility Code Compliant

9 Value Proposition Aesthetics Strength Ease of installation 100 % Compliance with Safety and Accessibility Codes and Customer Needs. Affordability How to communicate the Product?

10 Cost per Linear Foot Competition CAN$ Wood Wood Rail Metal Fabricants Metal HYRID PromenAid Resistance Compliance Wood Rails Pinch Grip Indoor Use Hazardous Install Process Metal Rails Special installation required Additional Kits Required Wood Rail No angle changes

11 Distribution Channels Lowes-USA E-Channels Self-Service Model Search for a Better Align Store in USA Home Hardware- Canadian 1,100 Franchise Stores Customer Know-How Incharge of Logistrics/Pricing Residential Segment

12 Marketing

13 Client Mix Homeowners Buyers Commercial Speciality Doctors / Therapists Users Mobility Impaired Influencers Distributors Seniors Builders

14 PromenAid E-Store Develop webpage that serves as an online showroom and store. Showroom Product Details Installation Examples Support FAQ How to? Store Wholesale Regular Clients Media Videos DYI Installation Step by Step Outsource Distribution and Logistics Cost: 15% Online Sales vs. Amazon 15% sales +12% shipping

15 Social Media Campaign Buyers Users Influencesrs How to Videos Users Testimony Target Why PromenAid handrail?

16 Online Ads Adwords by Google Amazon Suggestion Ads Instagram and Facebook Ads

17 Sponsorship Therapist Events Senior Communities Activities Builders Conference

18 Youtube Channels Step by step DYI installations Home Décor Options Clients and users testimony

19 Residential Specialty Segment 149 Million Households 34 Million or 22.8% holds a senior resident 19% Mobility Impairment 10% Senior Mobility Impairment Joint Ventures with major construction companies, pre-installation in new homes. Interactives showroom in Home Department Stores. Install PromenAid in model home of Senior Communities.

20 Financials

21 Variable Cost vs. Fixed Costs 7, , , , , , , Variable Costs Fixed Costs

22 Current Financial Structure 9% 10% 81% CURRENT LIABILITY LONG-TERM LIABILITY EQUITY

23 Cost of Goods Sold 7, , , , , , ,

24 Operation Funds Needed Assuming constant sales, 30 days of accs payable and 30 days in inventory Amazons needs of Fund For a Week Other Dealers Needs of Fund For a Month

25 Debt vs. Equity % 76% Debt Equity

26 Return on Sales 30% 20% 10% 0% % -20% -30%

27 Needs for Short-Term Debt Operations Increase in Credit Line (50.00) (100.00) $77.23 (150.00) (200.00) 2020 (250.00) Amazons needs of Fund For a Week Other Dealers Needs of Fund For a Month $ Line of Credit Surpluss/Deficit -- Needs of Funds

28 Contingency Plan Operating Control ERP (Enterprise Resource Planning) Sustainable Market Participation Growth Define Corporate Governance Patent Remaining Time Search for cheap production to maintain price competition Product development investment Resources Credit Line Extension

29 Corporate Governance Geller MBA Strategic Planning Managing People Warshaw Industrial Design Manufacturing High Volume Products Investors Financial Skills Product Development Missing Skillsets of the Board Sales and Retail Experience Recommendation: Hire New Board Member

30 Timeline

31 Conclusion Questions?